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DOLAN v. AID INS. CO.

No. 87-1380.

431 N.W.2d 790 (1988)

Robert L. DOLAN Appellee, v. AID INSURANCE COMPANY, n/k/a Allied Insurance Group, Appellant.

Supreme Court of Iowa.

Rehearing Denied December 16, 1988.

Attorney(s) appearing for the Case

John J. Carlin of Carlin, Hellstrom & Bittner, Davenport, for appellant.

Alfred E. Hughes of Hughes & Trannel, Dubuque, for appellee.

William E. Timmons and Douglas A. Haag of Patterson, Lorentzen, Duffield, Timmons, Irish, Becker & Ordway, Des Moines, for amicus curiae Iowa Ins. Institute.

Considered en banc.

SNELL, Justice.

This appeal raises an issue which has recurrently been before this court: whether we will recognize a cause of action in tort against an insurance carrier for bad faith conduct relating to a claim made by its insured. Although we have recognized a cause of action against an insurer for bad faith in its representation of an insured against a third-party claim, Kooyman v. Farm Bureau Mut. Ins. Co., 315 N.W.2d 30

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